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Wall Street was in good shape last week with the S&P 500, the Dow Jones and the Russell 2000 adding about 1.23%, 2.7%, 0.23%, respectively, and the Nasdaq Composite losing about 1.5%. The Dow Jones has been hovering around a record high.
Economic datapoints have come in a bit weaker lately. The U.S. economy added 266,000 jobs in April 2021, after a downwardly revised 770,000 rise in March and below market expectations of a rise of 978,000 as employers face worker shortage.
The ISM Manufacturing PMI dropped to 60.7 in April 2021 from 64.7 in March, falling short of market forecasts of 65 as shortage of raw materials put pressure on production. Despite the decline, the latest reading marked an expansion in the manufacturing sector for 11 successive months (read: Key Winning ETF Areas Despite Subdued April Manufacturing Data).
Corporate earnings have been encouraging. And talks are rife that inflation in the United States has been gaining steam. Against this backdrop, below we highlight a few leveraged ETF areas that won last week.
Winners
Energy
Oil prices recovered last week on upbeat economic data from China and the United States. Both Brent and WTI posted the second weekly gain on easing restrictions in the United States and Europe on growing vaccination. Continued revival in factory activities and pent-up summer travel also boosted the demand for energy prices.
Microsectors U.S. Big Oil Index 3X ETN (NRGU - Free Report) – Up 28.9%
Ultra Oil & Gas Proshares (DIG - Free Report) – Up 17.8%
Gold Miners
As the greenback skidded on weaker-than-expected jobs data, gold prices gained. SPDR Gold Trust (GLD - Free Report) added about 3% last week. This, in turn, benefited gold mining stocks.
The period was robust for the homebuilding industry with rising prices, sales and demand. Mortgage rates were extremely low. Homebuilder stocks have also been becoming cheaper as earnings and sales estimates have been rising.
Banks are better positioned as strong household savings ruled out the fear of delinquencies or default on loans in the banking sector. In any case, banking is currently an undervalued sector. Earnings have been upbeat in the sector. The modestly rising rate environment is another plus for the banking stocks (read: Top ETF Stories of April: Economically Sensitive Areas Steady).
Microsectors 3X U.S. Big Banks ETN (BNKU - Free Report) – Up 13.9%
High Beta
A decently growing U.S. economy, strong consumer savings and promising corporate earnings acted as catalysts for the high-beta stocks. The underlying S&P 500 High Beta Index selects 100 securities from the S&P 500 Index that have had the highest sensitivity to beta over the past 12 months.
S&P 500 High Beta Bull 3X Direxion (HIBL - Free Report) – Up 12.5%
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5 Best Leveraged ETF Areas of Last Week
Wall Street was in good shape last week with the S&P 500, the Dow Jones and the Russell 2000 adding about 1.23%, 2.7%, 0.23%, respectively, and the Nasdaq Composite losing about 1.5%. The Dow Jones has been hovering around a record high.
Economic datapoints have come in a bit weaker lately. The U.S. economy added 266,000 jobs in April 2021, after a downwardly revised 770,000 rise in March and below market expectations of a rise of 978,000 as employers face worker shortage.
The ISM Manufacturing PMI dropped to 60.7 in April 2021 from 64.7 in March, falling short of market forecasts of 65 as shortage of raw materials put pressure on production. Despite the decline, the latest reading marked an expansion in the manufacturing sector for 11 successive months (read: Key Winning ETF Areas Despite Subdued April Manufacturing Data).
Corporate earnings have been encouraging. And talks are rife that inflation in the United States has been gaining steam. Against this backdrop, below we highlight a few leveraged ETF areas that won last week.
Winners
Energy
Oil prices recovered last week on upbeat economic data from China and the United States. Both Brent and WTI posted the second weekly gain on easing restrictions in the United States and Europe on growing vaccination. Continued revival in factory activities and pent-up summer travel also boosted the demand for energy prices.
Microsectors U.S. Big Oil Index 3X ETN (NRGU - Free Report) – Up 28.9%
Energy Bull 2X Direxion (ERX - Free Report) – Up 18.2%
Ultra Oil & Gas Proshares (DIG - Free Report) – Up 17.8%
Gold Miners
As the greenback skidded on weaker-than-expected jobs data, gold prices gained. SPDR Gold Trust (GLD - Free Report) added about 3% last week. This, in turn, benefited gold mining stocks.
Microsectors Gold Miners 3X ETN (GDXU - Free Report) – Up 27.6%
Gold Miners Bull 2X Direxion (NUGT - Free Report) – Up 18%
Junior Gold Mine Bull 2X Direxion (JNUG - Free Report) – Up 17%
Homebuilding
The period was robust for the homebuilding industry with rising prices, sales and demand. Mortgage rates were extremely low. Homebuilder stocks have also been becoming cheaper as earnings and sales estimates have been rising.
Homebuilding & Suppliers Bull 3X Direxion (NAIL - Free Report) – Up 15.6%
Big Banks
Banks are better positioned as strong household savings ruled out the fear of delinquencies or default on loans in the banking sector. In any case, banking is currently an undervalued sector. Earnings have been upbeat in the sector. The modestly rising rate environment is another plus for the banking stocks (read: Top ETF Stories of April: Economically Sensitive Areas Steady).
Microsectors 3X U.S. Big Banks ETN (BNKU - Free Report) – Up 13.9%
High Beta
A decently growing U.S. economy, strong consumer savings and promising corporate earnings acted as catalysts for the high-beta stocks. The underlying S&P 500 High Beta Index selects 100 securities from the S&P 500 Index that have had the highest sensitivity to beta over the past 12 months.
S&P 500 High Beta Bull 3X Direxion (HIBL - Free Report) – Up 12.5%
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>